iShares Silver Trust (NYSEARCA:SLV) stock is falling on Friday as the exchange-traded fund (ETF) is affected by falling gold and silver prices.
It makes sense that the SLV ETF would slip alongside the price of gold and silver. In the case of silver, recent futures for the precious metal have dropped 76.2 cents to $19.59 per ounce. That’ represents a 3.7% decrease.
So what’s behind the decreasing price of gold and silver right now? It likely won’t come as a surprise to investors that the metals are losing value due to the current state of the economy. Continuing economic troubles have been harming assets, as well as the stock market.
Unfortunately, it doesn’t look like things are going to get better any time soon. The Federal Reserve is still planning to increase interest rates as it attempts to battle inflation. That, combined with fears of a recession, continue to weigh on the economy.
Suki Cooper, a Standard Chartered analyst, said the following to Bloomberg:
“The market focus has shifted from potential supply losses to a potential demand slowdown … We do expect auto production to start to recover toward the end of the year as chip shortages ease, but before then ETF flows are likely to continue to be a drag on the market across silver and the PGMs.”
All of this has SLV seeing heavy trading on Friday. As of this writing, more than 33 million shares have been traded. That’s above its daily average trading volume of roughly 29.6 million shares.
SLV stock is down 2.2% as of Friday afternoon and is 13.9% since the start of the year.
There’s more recent stock news worth diving into below!
We’ve got all the latest stock news investors need to know about for Friday! A few examples of that include what has shares of Mullen Automotive (NASDAQ:MULN) moving, companies offering travel pay for abortions as well as why Revlon (NYSE:REV) stock is on the move.
More Friday Stock Market News
- Mullen (MULN) Stock Reverses Higher Despite Absence of Fortune 500 Info
- What Companies Will Pay for Abortion Travel?
- REV Stock Moves Amid Revlon Bankruptcy, Short Squeeze Hopes
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.